Catch up on the key updates from Property Council’s advocacy team, including:
Property Council releases Principles of Value Capture
This year, Value Capture has become a key workstream for Property Council New Zealand. Our Value Capture Taskforce has explored the potential for Value Capture to serve as a tool to fund infrastructure projects in New Zealand. We have recently established ‘bottom line’ principles in relation to value capture and shared them to a wide range of central and local government stakeholders. Have a read of our principles below:
Background
Various international jurisdictions have utilised Value Capture as an infrastructure funding mechanism. Value Capture seeks to collect revenue from the private ‘value’ that public investment in infrastructure generates. When the government builds new infrastructure that unlocks development opportunities, there is typically an uplift in property value, the benefit of which goes to private landowners. There are multiple Value Capture methods, which are adopted at various stages of the development process.
Definition
Value Capture is an approach to infrastructure funding, where government looks to receive a contribution from properties that receive value, as a result of central or local government investment.
Principles
- Value Capture must only apply to properties with a clear geographic link to the new infrastructure and be applied proportionally across properties that have seen an increase in value and/or their development capacity (e.g., zoning).
- Value Capture must differentiate between property types (e.g., commercial, office, industrial and residential) to reflect value received.
- Value Capture should not detrimentally impact the financial feasibility of future developments and should not be used to wholly fund any particular project.
- To prevent unintended and perverse outcomes, Value Capture should be the result of meaningful engagement with all sectors (including the private sector), signalled well in advance, and not be retrospectively applied.
Please contact Logan Rainey for further information.
Risk guidance for buildings with low seismic ratings
Our understanding of earthquakes has changed considerably over time with many older buildings not meeting standards required of new buildings. As a result of this, the Building Performance team from MBIE has released a new seismic risk guidance for buildings. In a nutshell, the guidance helps building users, tenants and owners to understand seismic assessments of their buildings and make risk informed decisions about continued occupancy of these buildings when they have a low seismic rating.
If you have any questions, feel free to email the Building and Performance Team or visit the Building Performance website.
Kāinga Ora 2030 strategy and consultation
Kāinga Ora have released their draft strategy on how they will deliver outcomes by partnering with others. The strategy is currently in draft form, and they are looking from input from the property sector via means of a survey.
If you are interested in participating please click here.